Illinois Compiled Statutes
Chapter 205 - FINANCIAL REGULATION
205 ILCS 675/ - Illinois Financial Services Development Act.

(205 ILCS 675/1) (from Ch. 17, par. 7001)
Sec. 1.

This Act shall be known and may be cited as the
"Illinois Financial Services Development Act".

(Source: P.A. 85-1432.)

(205 ILCS 675/2) (from Ch. 17, par. 7002)
Sec. 2.
Findings and Declarations of Policy.
The General Assembly
hereby finds, determines and declares:
(a) That the economic strength of Illinois requires strong and effective
financial institutions in Illinois;
(b) That in order to cultivate the economic strength of the financial
institutions in Illinois, it is necessary to strengthen job opportunities
so as to encourage Illinois financial institutions to expand in Illinois
and to attract new financial institutions to Illinois;
(c) That Illinois is losing existing jobs and future job opportunities
in Illinois financing institutions because of an adverse regulatory climate
involving consumer revolving credit laws;
(d) That the State has a responsibility to create a beneficial climate
for new and improved job opportunities for its citizens with financial
institutions of all kinds by encouraging the growth and strengthening of
Illinois financial institutions;
(e) That in order for Illinois financial institutions to provide the
jobs and business opportunities for the citizens of Illinois, the
restrictions on consumer revolving credit plans must be modernized and
made competitive with those offered to financial institutions located in
other states who in turn provide their services in direct competition with
the Illinois financial institutions;
(f) That without this modernization, Illinois financial institutions
will reduce the existing job opportunities in Illinois and no longer look
to Illinois as a good place to do business and to expand and grow.

(Source: P.A. 85-1432.)

(205 ILCS 675/3)
Sec. 3. As used in this Section:
(a) "Financial institution" means any bank with its
main office or, after May 31, 1997, a branch in this State, any state or
federal savings and loan
association or savings bank with its main office or branch in this State,
any state or federal credit
union with its main office in this State, and any lender licensed under the
Consumer Installment Loan Act or the Sales Finance Agency Act; provided, however, that lenders licensed under the Consumer Installment Loan Act or the Sales Finance Agency Act are prohibited from charging interest in excess of 36% per annum for any extension of credit under this Act.
(b) "Revolving credit plan" or "plan" means a plan contemplating the
extension of credit under an account governed by an agreement between a
financial institution and a borrower who is a natural person pursuant to which:
(c) "Credit device" means any card, check, identification code or other
means of identification contemplated by the agreement governing the plan.
(d) "Outstanding unpaid indebtedness" means on any day an amount not in
excess of the total amount of purchases and loans charged to the borrower's
account under the plan which is outstanding and unpaid at the end of the day,
after adding the aggregate amount of any new purchases and loans charged to
the account as of that day and deducting the aggregate amount of any
payments and credits applied to that indebtedness as of that day and, if
the agreement governing the plan so provides, may include the amount of any
billed and unpaid interest and other charges.
(e) "Credit card" means any instrument or device, whether known as a credit card, credit device, credit plate, charge plate, or any other name, issued with or without fee by an issuer for the use of the borrower in obtaining money, goods, services, or anything else of value on credit, but does not include any negotiable instrument as defined in the Uniform Commercial Code, as now or hereafter amended, or a debit card that may indirectly access an overdraft line of credit through a debit to a deposit account.
(f) "Credit card account" means a revolving credit plan accessed by a credit card.
(Source: P.A. 96-936, eff. 3-21-11; 96-1193, eff. 7-22-10; 97-333, eff. 8-12-11.)

(205 ILCS 675/4) (from Ch. 17, par. 7004)
Sec. 4.

Notwithstanding the provisions of any other laws in
connection with revolving credit plans, any financial institution may,
subject to the other provisions of this Section 4 offer and extend credit
under a revolving credit plan to a borrower and in connection therewith may
charge and collect interest and other charges, may take real and personal
property as security therefor and may provide in the agreement governing
the revolving credit plan for such other
terms and conditions as the financial institution and borrower may agree
upon from time to time. A financial institution offering or soliciting a
revolving credit plan involving a credit card, or extending credit pursuant
to the use of a credit card under any such plan, shall comply with
provisions of "An Act relating to the issuance and use of credit cards",
approved September 16, 1969, as now or hereafter amended.

(Source: P.A. 85-1432.)

(205 ILCS 675/5) (from Ch. 17, par. 7005)
Sec. 5.
A financial institution may charge and collect interest
under a revolving credit plan on outstanding unpaid indebtedness in the
borrower's account under the plan at such periodic percentage rate or rates
as the agreement governing the plan provides or as established in the
manner provided in the agreement governing the plan. If the agreement
governing the revolving credit plan so provides, the periodic percentage
rate or rates of interest under such plan may vary in accordance with a
schedule or formula. Such periodic percentage rate or rates may vary from
time to time as the rate determined in accordance with such schedule or
formula varies and such periodic percentage rate or rates, as so varied,
may be made applicable to all outstanding unpaid indebtedness under the plan
on or after the effective date of such variation, including any such
indebtedness arising out of purchases made or loans obtained prior to such
variation in the periodic percentage rate or rates. If the applicable
periodic percentage rate under the agreement governing the plan is
other than daily, periodic interest may be calculated on an amount not in
excess of the average of outstanding unpaid indebtedness for the applicable
billing period, determined by dividing the total of the amounts of
outstanding unpaid indebtedness for each day in the applicable billing
period by the number of days in the billing period. If the applicable
periodic percentage rate under the agreement governing the plan is monthly,
a billing period shall be deemed to be a month or monthly if the last day
of each billing period is on the same day of each month or does not vary by
more than 4 days therefrom.

(Source: P.A. 97-813, eff. 7-13-12.)

(205 ILCS 675/6) (from Ch. 17, par. 7006)
Sec. 6.

In addition to or in lieu of interest at a periodic rate or
rates as provided in Section 5, and without limitation of the foregoing
Section 4, a financial institution may, if the agreement governing the
revolving credit plan so provides, charge and collect as interest, in such
manner or form as the plan
may provide, an annual or other periodic fee for the privileges made
available to the borrower under the plan, a transaction charge or charges,
late fees or delinquency charges, returned payment charges, over limit
charges and fees for services rendered.

(Source: P.A. 85-1432.)

(205 ILCS 675/7) (from Ch. 17, par. 7007)
Sec. 7.

(a) At or before the date a billing statement is first
rendered to the borrower under a revolving credit plan, the financial
institution must mail or deliver to
the borrower a written description of the conditions under which a charge
for interest may be made and the method, including the rate (expressed as
an annual percentage rate), of computing these interest charges. If during
any billing period any debit or credit entry is made to a borrower's account
under a revolving credit plan, and if at the end of that billing period
there is an unpaid balance owing to the financial institution from the
borrower, the financial institution must give to the borrower the following
information within a reasonable time after the end of the billing period:
(1) the unpaid balance at the beginning of the billing period;
(2) the date and amount of all loans or purchases made during the billing period;
(3) the payments by the borrower to the financial institution and any
other credits to the borrower's account during the billing period;
(4) the amount of interest and other charges, if any, charged to the
borrower's account during the billing period;
(5) the amount which must be currently paid by the borrower and the date
on which that amount must be paid in order to avoid delinquency; and
(6) the total amount remaining unpaid at the end of the billing period
and the right of the borrower to prepay that amount in full without penalty.

A financial institution which complies with or is exempt from the applicable disclosure
requirements of the Truth-in-Lending Act,
and regulations promulgated thereunder, as in effect from time to time,
shall be deemed to be in compliance or exempt from with all of the
provisions of this Section 7.
(b) The financial institution under a revolving credit plan must compute
at the end of each calendar year the total amount charged to the borrower's
account during such year, including interest and any other charges, and
upon request must furnish such information to the borrower within 30 days
after the end of the year, or if the account has been terminated during
such year, may give such requested information with 30 days after such
termination. The financial institution shall annually inform the borrower
of the right to obtain such information.

(Source: P.A. 85-1432.)

(205 ILCS 675/8) (from Ch. 17, par. 7008)
Sec. 8. Amendment of agreement governing revolving credit plans other than credit card accounts.
(a) If the agreement governing a revolving credit plan other than a credit card account so provides or
allows, a financial institution may at any time or from time to time amend the
terms of such agreement in accordance with the further provisions of this
Section 8. The financial institution shall notify each affected borrower of
the amendment in the manner set forth in the agreement governing the plan and
in compliance with the requirements of the Truth-in-Lending Act and regulations
promulgated thereunder, as in effect from time to time, if applicable.
(b) Subject to subsection (c) below, if the terms of the agreement
governing the plan, as originally drawn or as amended pursuant to this
Section so provide, any amendment may, on and after the date upon which it
becomes effective as to a particular borrower, apply to all then
outstanding unpaid indebtedness in the borrower's account under the plan,
including any such indebtedness which shall have arisen out of purchases
made or loans obtained prior to the effective date of the amendment.
(c) If such amendment has the effect of increasing the interest or other
charges to be paid by the borrower, the financial institution shall mail or
deliver to the borrower, at least 30 days before the effective date of the
amendment, a clear and conspicuous written notice which shall:
(c-5) If such amendment results in an unfavorable change in the
interest or other charges on a revolving credit plan which: (i) relates to a
change in the borrower's credit standing, (ii) does not
affect all or a substantial portion of a class of the creditor's
accounts, and (iii) does not relate to inactivity, default, or delinquency on
that revolving credit plan, the financial institution shall include in
the notice required by subsection (c) of this Section 8 a statement
that is substantially similar to the following:

(c-10) As a condition to the effectiveness of the borrower's notice not
to accept
the amendment, the financial institution may require the borrower to return all
credit devices.
Any borrower who gives a timely notice electing not to accept the
amendment shall be permitted to pay the outstanding unpaid indebtedness in
the borrower's account under the plan in accordance with the terms of the
agreement governing the plan without giving effect to the amendment.
Notwithstanding the financial institution's receipt of the borrower's
notice under item (4) of subsection (c) that the borrower does not accept the amendment, the
amendment shall be deemed to have been accepted and effective with respect to
the borrower and the borrower's account if the borrower uses the credit device
to obtain credit under the credit plan on or after the effective date of the
amendment, and the amendment shall be deemed effective as of the effective date
originally disclosed by the financial institution.
(d) For purposes of this Section, the following shall not be deemed an
amendment which has the effect of increasing the interest to be paid by the
borrower:

(205 ILCS 675/8.5)
Sec. 8.5. Amendment of agreement governing credit card accounts.
(a) Amendment of terms. If the agreement governing a credit card account so provides or allows, then a financial institution may at any time or from time to time amend the terms of such agreement in accordance with the further provisions of this Section. The financial institution shall notify each affected borrower of the amendment in the manner set forth in the agreement governing the credit card account and in compliance with the requirements of the Truth-in-Lending Act and regulations promulgated thereunder, as in effect from time to time, if applicable. The provisions of Section 8 of this Act shall not apply to the amendment of the terms of the agreement governing the credit card account.
(b) Interest rate increase limited to future transactions. An agreement governing a credit card account may be amended to increase the interest rate on future transactions which may take effect not less than 45 days after notice of the rate increase is provided to the borrower. The interest rate may only be applied to transactions that occur more than 14 days after provision of the notice to the borrower. The notice to the borrower shall disclose the interest rate applicable to new transactions, the date the interest rate will commence, the transactions subject to the increased interest rate, and the transactions subject to the current interest rate. A financial institution may not increase the interest rate under this subsection during the first year after the credit card account is opened.
(c) Advance notice and right to reject an increase in fees or charges. An agreement governing a credit card account may be amended to increase fees or charges on or after an effective date that is at least 45 days after provision of a notice to the borrower, provided a financial institution may not increase fees or charges on a credit card account during the first year after the credit card account is opened. The notice to the borrower shall:
(d) Interest rate increase applicable to current balances. A financial institution may not increase the interest rate on the outstanding unpaid indebtedness under a credit card agreement, except as permitted in the following:
(e) Universal default prohibited. A financial institution may not impose an unfavorable change in the interest or other charges on a credit card account which: (i) relates to a change in the borrower's credit standing, (ii) does not affect all or a substantial portion of a class of the creditor's accounts, and (iii) does not relate to inactivity, default, or delinquency on that credit card account.
(f) Any borrower who gives a timely notice under subsection (c) of this Section rejecting an amendment to increase fees or charges shall be permitted to pay the outstanding unpaid indebtedness in the borrower's credit card account, in accordance with the terms of the agreement governing the credit card account without giving effect to the amendment.
(g) For purposes of this Section, the following shall not be deemed an amendment that has the effect of increasing the interest to be paid by the borrower:
(Source: P.A. 96-1193, eff. 7-22-10.)

(205 ILCS 675/9) (from Ch. 17, par. 7009)
Sec. 9.

No writing or other agreement between a borrower and a
financial institution may contain any provision which constitutes a waiver
of any right conferred upon borrowers by this Act, or of any duty,
condition or limitation imposed upon financial institutions by this Act.
Nothing in this Section 9 prohibits, however, any writing or other
agreement which grants to a borrower a more extensive right or remedy or
greater protection than contained in this Act or a waiver given in
settlement of a dispute or action.

(Source: P.A. 85-1432.)

(205 ILCS 675/10) (from Ch. 17, par. 7010)
Sec. 10.

A revolving credit plan between a financial institution
and a borrower shall be governed by the
laws of this State. All terms, conditions and other provisions of and
relating to a plan, including, without limitation, provisions relating to
the method of determining the outstanding unpaid indebtedness on which
interest is applied, time periods within which interest charges may be
avoided, change in terms, requirements, rights to charge and collect
attorneys' fees, court and collection costs and the computing of periodic
interest or charges, shall be and hereby are deemed to be material to the
determination of interest applicable to a plan under Illinois law, Section
85 of the National Bank Act and Sections 521
through 523 of the Depository Institutions Deregulation and Monetary Control Act of 1980.

(Source: P.A. 85-1432.)

(205 ILCS 675/11) (from Ch. 17, par. 7011)
Sec. 11.

Any amendment of a revolving credit plan which violates the
conditions or limitations of Section 8 of this Act shall not be
enforceable, but such plan shall remain enforceable according to its
original terms. Any borrower whose revolving credit plan has been
unlawfully amended may recover by means of an action or defense an amount
equal to twice the amount by which such borrower's payments of interest and
charges were increased solely due to such unlawful amendment, plus such
reasonable attorneys' fees and court costs as may be assessed by a court
against the financial institution. Recovery by means of a defense may be
had at any time after such amendment purports to be effective. Recovery by
means of an action may be had at any time after such amendment purports to
be effective and prior to the expiration of 2 years after the earlier of
(1) the date the last payment of such unlawfully increased interest or
charges, or (2) the date on which the borrower's plan has been terminated.
A bona fide error in connection with the amendment of a revolving credit
plan shall not be a violation under this Section if the financial
institution corrects the error within a reasonable time.

(Source: P.A. 85-1432.)